thursday, 25 february 2021 sp tlight on transport & logistics

A PUBLICATION OF

Thursday, 25 February 2021

SP TLIGHT on

Transport & Logistics

Keeping Namibia Moving During Covid-19

Thursday, 25 February 20212

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SPOTLIGHT ON TRANSPORT, LOGISTICS VEHICLE INDUSTRIES 2021

IMPACTED ... The logistics sector in Namibia had to adjust to constantly changing travel restrictions, weekly Covid-19 tests and endless border control queues.

• SHELLEYGAN PETERSEN

THE Covid-19 pandemic has disrupted the global supply chain as a result of

restricted access to countries, a situation no longer determined by permits but by health ministries and departments, to protect citizens and control the spread of the virus.

The logistics sector in Namibia had to adjust to constantly changing travel restrictions, weekly Covid-19 tests and endless border control queues.

In the last 12 months, Namibia opened and closed its borders at least three times, limiting access only to emergencies and leaving haulage truck drivers stranded.

Southern Africa Customs Union (Sacu) executive secretary Paulina Elago recently said the pandemic had continued to disrupt global activities across all economic sectors and industries, including logistical processes.

Sacu members are Botswana,

Lesotho, Namibia, South Africa and Eswatini.

“Governments across the globe continue implementing lockdowns and border closures to contain the pandemic. This has resulted in logistical constraints, slowed business and trade activities, and a resultant reduction in the movement of crossborder trade and people, and in some cases halted production,” Elago said.

In February last year, Sacu said one of the industries impacted negatively by the pandemic was construction because it took longer for imported materials to be delivered.

According to the finance ministry, revenue from Sacu is expected to fall by 33,7% in 2020/21 from N$22,3 billion to N$14,8 billion in 2021/22.

According to South African media, in April last year, Sacu said with the exception of Botswana, which had recorded high growth rates, South Africa

and Namibia were already experiencing a recession just before the Covid-19 outbreak, while Eswatini and Lesotho were experiencing growth rates below 2% over the past four years.

Economist Salomo Hei said industry depended on clear-cut communication on the pandemic regarding regulations because it severely impacts the revenue.

“The inability to communicate clearly hampers the movement of goods and services where ordinarily transport companies would spend eight hours at the border, they now take 48 hours. That has an impact on turnaround times and what the client wants to do with the product,” he added.

However, this was the case recently when truck drivers were barred from entering Namibia without Covid-19 test results and were forced to return to Zambia to get their certificates.

Minister of health and social services Kalumbi Shangula

Logistics Sector Hit by Covid-19 DisruptionsSpotlight on tranSport & logiSticS

said the transport industry should know the regulations as these are announced periodically.

He said the announcement of the impending arrival of the Covid-19 vaccine had created an expectation that recovery and revenue normalisation could happen.

It has created an expectation but not a certainty, looking at what happened in South Africa with the vaccine because of lack of understanding what the vaccine is and its delivery time,” he added.

He added that the expectation has seen the retail and consumer market slowly picking up pace which signals that demand for goods and services would follow suit.

He further said the pandemic might have hampered the supply chain globally but it is in a better state than sectors such as tourism because air freight services like Ethiopian Cargo & Logistics Services and Qatar Airways Cargo continued to move goods during the pandemic.

At the height of the first wave of Covid-19 infections, DHL, revealed several logistics-related challenges linked to inbound logistics and distribution.

The pandemic demonstrated that with sufficient planning and effective partnerships with supply partners, couriers can be important success factors for governments looking to secure critical medical supplies during health emergencies.

In a recent article, DHL said it had encountered challenges related to product-quality, constrained transportation capacity, complex customs processes and regulations that worsened delays, warehousing challenges, and limited transparency regarding stock levels.

The company suggested that by partnering suitable logistics services providers, governments can

alleviate these challenges.During the celebration to mark

World Customs Day recently, finance minister Iipumbu Shiimi said the sustenance and security of the supply plays a pivotal role in the movement of goods across borders and countries.

“Due to the capacity developed over the last few decades, we were able to seamlessly coordinate the movement of essential goods like medicine and food across the entire supply chain, despite the brunt of the pandemic,” Shiimi said. Statistics issued by the Namibia Statistics Agency last month showed that Namibia’s trade balance remained in a deficit of N$546 million, narrowing from N$2,6 billion recorded in November 2020 and against a surplus of N$19 million in December 2019.

Namibia exported mostly to China, South Africa, Botswana and Belgium which accounted for 70% of the country’s total exports.

Namibia imported mainly from South Africa, Zambia, China, Democratic Republic of Congo and Spain. These countries supplied 76,3% of goods and services needed in the country.

Last year, at the peak of Covid-19, public enterprises minister Leon Jooste tweeted that Namibia can become competitive as a logistics hub by unlocking niche opportunities to capitalise on its geographical position and serve neighbouring countries by optimising efficiency.

“[It is] time for Namibia to take our place as a seriously competitive port in SADC.”

This was in response to a tweet on how Namibia’s efficiency was proving costly to South Africa as ships turned to Walvis Bay rather than wait five days to dock in Cape Town and six days in Durban.

• STAFF REPORTER

LISA Katjimune (28) says the transport and logistics industry has opened a new

world to her.Katjimiune is a distribution

officer, who completed high school at Jan Möhr Secondary School in Windhoek and initially studied

education at the University of Namibia.

However, she dropped out in her second year.

“I felt like a failure and wasn’t sure where my life was going, but my family

kept motivating and encouraging me to never give up.

“I come from a very close-knit

and supportive family, so having them constantly rooting for me encouraged me to fulfil my passion for transport and logistics,” Katjimune says.

She says her passion for transport and logistics stems from her love for all things freight and cargo, and how they keep the world connected.

“As a child, my grandfather and I used to watch television shows on how the different types of cargo, such as containers, liquid bulk, dry bulk, break bulk and RoRo are transported all around the world. I fell in love with the whole transport industry.

“Being granted the opportunity to study it at the Namibia University of Science and Technology (Nust) opened many doors,” she says.

Katjimune initially wanted to do maritime studies abroad, but a lecturer at Nust convinced her that she would be exposed to an even broader world and understanding of the industry by studying transport and logistics.

“The main subjects we did were business logistics and supply-chain management, maritime and transport economics,” Katjimune says.

She says the perception exists that the industry is for men only.

“People undermine you, look down on you and believe you won’t survive in a male-dominated industry, but you need to keep believing in yourself and pushing yourself to always do better and prove them wrong. We

need to create an environment that enables women to study and work in any industry they want, without belittling them or making them feel less important.”

Katjimune, who currently works at Windhoek Observer, says transport and logistics can provide many opportunities, especially with Namport being among the largest logistics hubs in southern Africa.

“I am planning on doing my master’s degree in logistics this year, and I believe it will be very beneficial to me.

“I am immensely grateful for the opportunities this field has granted me, enabling me to provide for myself and my family and to be independent,” she says.

Connecting the World Through Logistics

Photo: Contributed

Lisa Katjimune

Thursday, 25 February 2021 3

Photos: Contributed

Spotlight on tranSport & logiSticS

ALTHOUGH Scandinavian Truck Parts (STP) in Windhoek’s Northern Industrial Area

specialises in the delivery of quality affordable truck spares and parts, the company boasts exceptional customer service and care.

Why is that?Says STP boss Uli Roland: “Today’s

business environment is tough and parts availability must go hand in hand with understanding customers’ needs in terms of pricing, quality, delivery lead times and giving the customer the certainty that we will walk ‘the extra mile’ for him.”

The company’s complete focus on customer service and its excellent parts availability is what Roland says separates STP from competitors.

In fact, the company ensures that staff is well trained and highly motivated to deliver top quality customer service at all times. Constant training and hands-on management have ensured this.

The company ensures it is open six days a week, while having an after-hours emergency service which will provide customers with parts required 24/7, all year round – and this at no extra cost to the customer.

“We will also endeavour to source any part not immediately available and fly this into Namibia, should this be urgent,” Roland said. STP was established in 2006 in response to a strong market demand for more affordable truck parts, and currently employs 18 people at its branches in Windhoek, at Walvis Bay and Ondangwa. From humble beginnings,

SUPPLY ... STP endeavours to source any part not immediately available and fly it into Namibia, should it be urgent. Parts are sourced worldwide. In general though, parts are always available.

STP Ensures Customer Satisfaction by the Truck Load

BOSS ... STP managing director Uli Roland says customer service is the foundation of a successful business.

it has become one of the major players in the aftersales truck parts business for Scania and Volvo in Namibia as it imports its parts from manufacturers and suppliers worldwide.

“Parts not readily available could cause customers to lose delivery contracts and even cause delivery of essentials such as food stuff or medicine to be delayed.

We source these parts worldwide and, once found, readily give clients various options in terms of transporting them, such as shipping,

flying or road transport (if from South Africa),” he explained. Roland said the company was impacted by Covid but has quickly bounced back.

“Fortunately, we have not had any problems with parts delivery and boast close to 100% parts availability during Covid-19.

Our staff is now more motivated than ever to deliver top quality customer service as this is the only way to secure their own future and that of the company,” he said.

• ADAM HARTMAN

Thursday, 25 February 20214 Spotlight on tranSport & logiSticS

The Namibian Logistics Hub

initiativeTransforming Namibia into

an International Logistics Hub for the Southern Africa

region.

Facilitating the free flow of trade to and from the SADC region.

Find us on:or visit our website: www.wbcg.com.na

Angola

Democratic Republicof the Congo Tanzania

Zambia

Malawi

ZimbabweNamibia

Mozambique

South Africa

Lesotho

Botswana

Swaziland

THE WALVIS BAY CORRIDORS:

Trans Cunene Corridor

Walvis Bay-Ndola-Lubumbashi Development Corridor

Trans Kalahari Corridor

Trans Oranje Corridor

1 2

3

4

4

3

2

1

• ADAM HARTMAN

THE Walvis Bay Corridor Group (WBCG) is celebrating its 21st anniversary this year. It has become a Namibian

success story and a key institution driving the agenda of the transport and logistics sector to the country’s benefit.

Since its inception, the WBCG has been on a mission to grow cargo volumes on the Walvis Bay corridor by promoting imports and exports through the ports of Walvis Bay and Lüderitz for the southern African region.

The Walvis Bay corridor involves a network of transport routes linking Walvis Bay to the Southern African Development Community (SADC), and include the Trans-Kalahari Corridor connecting Botswana and South Africa (SA); the Walvis Bay-Ndola-Lubumbashi Development Corridor connecting Zambia, Zimbabwe, Malawi and the Democratic Republic of Congo (DRC); the Trans-Cunene Corridor connecting Angola; and the Trans-Oranje Corridor connecting SA with the port of Lüderitz.

EVOLUTIONGroup communications manager

Cindy-Lu Hasheela says after Namibia’s independence, Walvis Bay was converted from a fishing port to a commercial port.

“Cargo moving from the port along the corridors started from a zero base, as all the goods destined for Namibia were transported on road via South Africa,” she says.

The Namibian Ports Authority (Namport) and TransNamib established the WBCG as a promotion and business development arm to assist in creating awareness of the new route in the regional and global logistics arena.

From the beginning the WBCG focused on marketing and promotion activities, and it soon became clear that continuous engagement in neighbouring countries was needed to secure cargo to and from these markets.

This led to the introduction of business-development offices in four key markets: Zambia, the DRC, SA and Brazil.

CHALLENGES“Although the cargo volumes continue to

grow on the route, challenges hinder repeat business, and so the need for a single point of coordination . . . to trade on the corridors arose,” Hasheela says.

This resulted in the emergence of the WBCG as a corridor management institution (CMI) to promote and coordinate efficient corridor development and operations. As a CMI, the group attributes its success to its unique public-private partnership model.

“This collaboration is incredibly important for economic development within the region and for the growth of the private

sector,” Hasheela says. Another persistent challenge has been the regional market’s perception that the Walvis Bay route is more expensive than other routes, but the WBCG’s extensive business-development and marketing efforts to convince potential customers to reroute has been successful with some customers.

FACILITATIONThe WBCG realised its need for key support

functions to achieve its core business. The HIV-AIDS Help Desk was launched to

address the disease in the transport sector. It started as an information-sharing

platform and dispatched condoms, but is now considered a top-tier wellness partner to the Ministry of Health and Social Services.

The project currently has five roadside clinics, with another four planned, as well as four mobile clinics operating countrywide.

The service provides HIV-AIDS and other primary healthcare services to mobile populations.

Most recently, the project supported the government’s efforts to contain the spread of the coronavirus by making its clinics and staff available to screening and testing services.

Another key support function is the Namibia Logistics Hub initiative, emanating from the industry and the WBCG’s lobbying to have it added as one of the main economic priorities to Namibia’s fourth National Development Plan.

The group advocated the establishment of trans-boundary corridor management secretariats to regulate and oversee the development and implementation of seamless cross-border trade, transport and

passenger facilitation measures. The first successful secretariat established

was the Trans-Kalahari Corridor secretariat in 2007, followed by the Walvis Bay-Ndola-Lubumbashi Development Corridor secretariat. The WBCG currently hosts the African Corridor Management Alliance’s secretariat. The objective of these secretariats is to reduce transport costs and transit periods along the corridors.

TAKING STOCKWBCG chief executive officer Mbahupu

Tjivikua says the past two decades have been a journey of continuous development, with volumes through Namibia’s ports growing from zero to over a million tonnes per year.

In terms of major disruptions to global logistics and supply chains brought about by the pandemic, Tjivikua says governments and industries are compelled to forge closer working relations with their neighbours to facilitate the flow of cargo along routes.

This bodes well for the Africa Continental Free Trade Area agreement, which aims to harmonise policies and procedures across the continent, he says.

“Reducing transit time, removing bottlenecks and improving corridor efficiency through PPPs remain the cornerstone o f the Walv is Bay corridorsstrategy to reduce the cost of doing business in SADC,” he says.

“The WBCG has established good working relationships over the years. We thank all our stakeholders who made this possible,” Tjivikua says.

“We are increasingly establishing the WBCG as the preferred provider of transport and logistics solutions.”

WBCG: 21 Years of Boosting Namibia’s Economy

Mbahupu Tjivikua

Photo: Contributed


We remain committed to employment creation and the socio-economic development of the communities in which we operate.

- Johan Laubscher

Photos: Contributed

D&M Rail Construction aims to make a tangible, worthwhile and significant contribution to the socio-economic

development of the coast, says its chief operating officer Johan Laubscher.

The company has been subcontracted in the rehabilitation of the 53 km railway-line between Walvis Bay and Swakopmund, which also forms part of the section between the harbour town and Arandis.

The rehabilitation project for the entire section of about 107 km was launched in December last year, and is being done by China Gezhouba Group Corporation. The construction period of the project is about two and a half years.

At the launch, transport minister John Mutorwa said that good transport and logistics infrastructure will go a long way in enhancing Namibia’s competitiveness and vision to become an international logistics hub serving mostly landlocked countries within southern Africa.

Laubscher said he is proud to be part of the project.

“Although we are subcontracted to the main contractor, and only have 20% of the contract, D&M Rail brings with it a hub of railway engineers and technicians with unrivalled experience to ensure that this project is a success,” he said.

According to him, during the following 13 months, the company will be removing tracks and sleepers and replacing them with new sleepers and tracks “to ensure a world-class, well-functioning railway system essential for the government’s vision to transform Namibia into a logistics hub, connecting SADC to international markets”.

D&M Rail Construction has over the years constructed and maintained over 600 km of railway-line, which include the Kranzberg-Tsumeb line, Ondangwa-Oshikango line, and the Aus–Lüderitz railway line – as well as numerous sidings for private companies.

HUMAN RESOURCESThe company aims to provide up to about

250 direct and indirect jobs, most of which are earmarked for coastal residents.

According to the human resources manager, Mattheus Kooper, the company brought in 54 employees consisting of platelayers, experienced general

workers and other skilled employees from Otjiwarongo, Otavi, Ondangwa, Tsumeb and Kalkfeld and Omaruru and the rest are being sourced from the Erongo and the coast.

“Our technical teams are highly experienced and have worked on various similar railway rehabilitation projects around the country and are really critical in meeting the high technical standards as well as tight deadlines and budgets set,” said Kooper.

“In addition, we sourced from the experienced general workers whose contracts had ended in 2019, to assist on the project and bring with them the experience and motivate the remaining employees to be drawn from the local area. It has always been D&M Rail’s position to employ as many of our staff from the local workforce, and the Erongo region will by no means be different.”

According to him, five new employees from the region obtained certificates of competence after they completed external practical and theoretical training in operating heavy machinery such as TLB, excavators, grader and front- end loader.s

The company works in collaboration with the labour ministry in the identification and recruitment of local staff.

SAFETYSafety of the workforce remains top

priority and the company has put all regulatory and legislative measures in place to ensure that no harm comes to employees during their working hours on and off site.

Experienced safety officers can be found all over the site ensuring safe working practices are maintained and Covid-19 regulations are adhered to.

Last November, eight employees successfully completed four days external training as safety representatives, first aiders and firefighters. Seven female employees completed a five-day external practical and theoretical training as protection officers/flagwomen during December.

ECONOMIC CONTRIBUTIONLaubscher said that the employment of

more than 250 staff members will make a meaningful contribution to the local economy through local spend on rent and

housing, retail and various other sectors.D&M Rail’s position to make use of mainly

local contractors to provide essential goods and services has ensured that in the past five months of setting up office at Swakopmund, it has spent in excess of N$1 million per month on local contractors.

“This will further contribute to the economy of the region. We are fully aware of the effects the Covid-19 pandemic had on the economy of the region, but remain confident that our little contribution will go some way in alleviating some of these effects.

We remain committed to employment creation and the socio-economic development of the communities in which we operate,” Laubscher concluded.

OTHER AREAS OF OPERATIOND&M Rail Construction is also involved

in the rehabilitation of the 392 kilometre of railway track between Kranzberg and Tsumeb. This was started in 2012 after numerous derailments were recorded on that line. To date the company has upgraded some 272 kilometres of track.

Upgrading is the removal of old steel sleepers and replacing them with new concrete sleepers and new ballast.

In order to provide much needed employment, this is all done by hand and to date the company has employed well over 300 Namibians at Tsumeb, Otavi, Otjiwarongo, Kalkfeld and Omaruru.

The company also boasts with its own training centre at Otjiwarongo where over 168 Namibians have now been trained in various skills related to railway construction and maintenance over the years. Recently, more than 200 D&M Rail Construction workers received Emotional Intelligence training (focusing on communications in a culturally diverse workplace and ambassadorship) from Usi Hoëbeb Communications, a Namibian Public Relations firm.

In addition, D&M Rail Construction has provided 14 bursaries to employees to further their studies at institutions of higher learning and donated well over N$2,4 million to various worthy causes as part of its corporate social investment endeavours.

D&M Rail Helping Coastal Economy to Stay on TrackJohan Laubscher Matthew Kooper



Navigating the World of Logistics• STAFF REPORTER

PASSIONATE … Logistics administrator Sinte Mufwambi at work.

Photo: Contributed

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SINTE Mufwambi is a 25-year-old logistics administrator.

She says her journey into the field of transport and logistics began during her high school years at Erundu Secondary School in Oshakati.

“We used to attend career fairs where high school pupils were invited by local

universities to get the opportunity to be taught about various career choices and that’s where I came across the field of transport and logistics offered by the Namibia University of Science and Technology (Nust).

“Soon after finishing high school in 2015, I applied for one of the courses - a Bachelor of Transport Management. Beginning my studies at the university

expanded my horizon in the field to understand the importance of transport and logistics in our daily lives. I then realised that this field is actually a lifestyle,” Mufwambi says.

Her bachelor’s degree comprised of modules that have an impact on transport sustainability. These included road safety and infrastructure management, transport economics,

- Sinte Mufwambi

We are all witnessing the impact of Covid-19 on supply and demand, especially of essential products

transport legal framework and transport operations management. “I fought with pride during my three-year degree and I obtained my qualification in 2018. My interest in the field continued to grow and as I learnt more and more about it when I joined Rennies Logistics in 2019.”

She describes the industry as male-dominated. “The logistics profession continues to be dogged by the perception that it is all about moving and heavy lifting, which has traditionally instilled the masculine image as part of the field, hence, limiting women’s entry into the field.

“I was further motivated, and went on to purse my honours degree in Logistics and Supply Chain Management to learn more critical subjects like strategic supply chain management, projects in supply chain management, advanced logistics operations and procurement and supplier relationship management. I am proud to say that I managed to pass all these modules and I was able to eliminate barriers that limit women,” she says.

Mufwambi says transport and logistics are a very essential component of supply chain management.

“They align transportation, shipping and receiving, importing and exporting operations, warehousing, inventory management, purchasing, production planning, and customer service.

“We are all witnessing the impact of Covid-19 on supply and demand, especially of essential products.

“We have seen how many businesses have found themselves unable to navigate the disruption to ordinary service.

“This is where logistics and supply chain management - the art of the flow of goods from manufacturing to consumers - comes into play, highlighting the vital importance of this field.

“For women, my message is that we must step out of our comfort zone. It takes courage for women to thrive in an environment dominated by men,” says Mufwambi, adding that women must not be limited by their gender.

“We should focus on the qualities we bring to the table and be proud of the role we can play.

“We must also support and empower each other.

“That means women working together, but also in collaborative partnerships with men to work better together.”


DYNAFLEX Technology is the name of the latest technology at the heart of

the Shell Fuel Save Diesel. Dynaflex formulation is a

complex blend that is specially designed and enriched with powerful cleaning agents to help maintain the cleanliness of key fuel system components, protecting them from performance robbing deposits, and helping to maintain engine efficiency.

It has been developed to meet the demands of modern engines, as well as continuing to deliver benefits in more traditional ones.

D y n a f l e x f o r m u l a t i o n represents the biggest change in formulation since Shell began offering premium fuels nearly 20 years ago and are the result of tens of thousands of hours spent on research, development and extensive testing taking more than five years.

Can Shell FuelSave Diesel deliver long term benefits to your vehicle?

Yes, it definitely can. Engine efficiency is the main benefit at the end of the day. All this is due to the following additives which are designed as part of Dynaflex technology. The additives include:

Antifoaming additives – Base diesel has the tendency to foam, but our antifoam additive allows faster safer fill and a fuller tank

Anticorrosion additives on key fuel system components to improve engine efficiency

Detergent additives to clean and help clean key fuel system components such as injectors. Meaning you don’t need to add extra third party products such as injector cleaners, as our Shell FuelSave Diesel is a final product.

Demulsifier additive which basically allows the separation of water from the diesel should it have gotten into the fuel tank for whatever reason

Customer will experience reduction in CO2 emissions, which ultimately helps protect the environment and will be more important looking at the future.

How often should drivers fill up with Shell FuelSave Diesel to get the benefits?

Filling up regularly with Shell FuelSave Diesel helps keep your engine clean and protected for efficient running.

The more consistently the car owner fills with Shell FuelSave Diesel, the more likely they are to experience from the benefits of Shell FuelSave Diesel. I’d even go so far as to challenge our viewers to fill up with our competitor products for say a month, and then do the same with our fuels after for a month so they can experience the true benefits of Shell FuelSave Diesel.

How does VEN get its fuel into the country, supply and distribution related and quality control?

We get base fuel into the country compliant with national specifications which is then locally additivated at our various storage facilities across the country.

What is Dynaflex Technology and How Does it Work?

WHEN EVERY HOUR ON THE ROAD COUNTSOur new, most advanced cleaning formula with exclusive DYNAFLEX Technology is designed to keep your fleet moving and provide more power to your wheels by helping to clean up injector deposits and prevent further build-up.

Compared to our previous formulation versus regular diesel without fuel economy formula. Actual savings may vary according to vehicle, driving conditions and driving style. Internal Shell tests and with our customers have shown a range of fuel savings depending on age of vehicle and type of operations. See www.vivoenergy.com for more information about DYNAFLEX Technology.

This requires strict monitoring and calibration of additivation and pumping equipment.

We test our fuels from when they get into the country, and even on a daily basis at our forecourts, using our Shell Quality Kits.

Why only Shell FuelSave Diesel and not Shell FuelSave Petrol?

We already have a premium petrol product, Shell V-Power and due to Namibia being a regulated market, it wouldn’t make business sense to have two additivated petrol fuels in the same market, as we wouldn’t be able to sell them at different prices, as the government regulates this. Basically our customers get premium products at no extra cost to them.



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• LAZARUS AMUKESHE

THE success of the Africa Free Trade Area agreerment largely hinges on good

infrastructure, analysts say, and banks have extended billions in loans to the logistics sector in the last five years.

Data from the central bank shows that Namibian commercial banks have extended loans to the transport and communications sector to the tune of N$7 billion.

This was granted mainly to provide working capital, as well as investment in assets.

In 2017 the secretary general of the Organisation for Economic Cooperation and Development, Angel Gurría, said investment in transportation needs to move toward “building right”, not just “building more”.

In Namibia, the private sector has minimally invested in transport infrastructure, which Gurría a few years ago said needed to change.

“The private sector has a key role to play in this shift, which would help governments to meet the pressing economic, social, and environmental challenges they will face in the coming decades. Governments must play a central role in mobilising private-sector investment for sustainable transport infrastructure,” he said at the time.

In a Bank of Namibia report on the funding of Namibian infrastructure released in 2014, researchers said reliable infrastructure is critical for high and sustained economic growth. Imported products enter Namibia mainly via road transport.

Recent data from the Namibia Statistics Agency shows that road was the most frequent mode of transport used for imports in December 2020. It amounted to N$6 billion, representing 72,5% of all goods imported into the country.

For 2020 alone, over N$70 billion worth of goods came in Namibia by road.

A haulage sector once dominated by South African companies now has several Namibian players transporting goods to and from the country’s trading neighbours.

The Namibian University of Science and Technology boasts an operational Namibian-German Centre for Logistics, which aims at supporting the tasks and needs of the local transportation and logistics industry. Its mission is to establish state-of-the-art know-how in logistics in Namibia with regards to research, education and practice.

Many Namibians have been trained in the art of logistics at this institute, and have started businesses to become active participants in the sector.

Investment in Logistics Keeps Growing

• ADAM HARTMAN

WITH operations that cover fuel transport, ve ss e l b u n ke r i n g ,

terminal and weighbridge management, general freight and mining, drilling and blasting, road maintenance, customising and standardising performance-based trains and return haulers, and stock management (using drones), it is no wonder Unitrans Namibia plays a major role in keeping the country’s economic wheels turning.

To support these services, the company maintains key equipment and experienced personnel, according to Unitrans Namibia general manager Phil Henning. Unitrans Namibia has been in operation since 1997 and is a subsidiary of Unitrans Africa (Pty) Ltd, which forms part of group holding company, KAP International Limited (listed on the Johannesburg Stock Exchange).

The national headquarters is based at Walvis Bay, and there are depot facilities in Windhoek, and at Tsumeb and Ondangwa. The company has a staff complement of 158 people and a fleet of 71 trucks, tractors, fuel tankers, side tippers, loaders and a bulldozer.

To enhance its efficiency and capacity, the company embarked on a project that requires a reduction to its fleet, increasing

the payload and doing things safer.

For this, Unitrans Namibia invested in performance-based standard (PBS) technology, and according to Henning, Unitrans is the first transporter in Namibia to be PBS approved. PBS is an alternative regulatory system for heavy vehicles.

“It replaces prescriptive limits with performance limits and promotes safety, innovation and efficiency, therefore creating a better match between vehicle loads and road infrastructure,” explained Henning. “So by going PBS, we are able to increase our payload, reduce the fleet on the road, reduce road wear, increase the safety of the vehicles and so increase rollover threshold of current fleet. That is the type of innovation our customers look for and what we want to deliver.”

Henning sa id that the company also prides itself in the continuous training and development of staff, and so have the necessary qualified and experienced personnel to carry out the required operations successfully in the transport, handling and distribution arenas.

As with any transporter, safety is key, and Unitrans goes the extra mile to make sure they are compliant. They even have an onsite training facility with two accredited driver trainers who are involved from the interview process till the driver gets

his hazardous chemicals and defensive driving certificates.

Henning admitted that in the past year with Covid-19, the company has been much challenged and was forced to make a lot of changes to ensure staff stay safe, and that no jobs are lost. He said that while Unitrans and its customers are essential services, the company still operated – but with the limited movement in Namibia and schools closed, less fuel was used. This affected the company as the demand was low.

“One of the biggest challenges during the epidemic is to keep the staff focused as there is so many distractions and more rules, and therefore it is easy to lose focus on the basics that still need to be adhered to. That is why we keep on engaging our staff on a daily basis to make sure we are all still focused on making sure we know what is expected from us,” said Henning.

Henning is positive about the future, and the company is making it a priority to stay close to existing customers and add new customers, as well as invest in their staff and communities as these are “the backbone of our business and future success”.

“Relationships are key and our customers are always under pressure to stay ahead of their competition and we need to be close to them to give them that added advantage.”

Thursday, 25 February 2021 9Spotlight on tranSport & logiSticS

UNITRANS Keeps the Wheels of Economy Turning

STAYING FOCUSED … Unitrans headquarters at Walvis Bay.

FTW3590SD

FUEL … Unitrans doing bunkering at the Walvis Bay harbour.Photos: Contributed

MAINSTAY ... The company has a staff complement of 158 people and a fleet of 71 trucks, tractors, fuel tankers, side tippers, loaders and a bulldozer.


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1 Asset-Backed Finance (ISA)

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4 Commercial Property Finance

For acquisition or construction of immovable commercial property or making improvements to fixed commercial property

5 Project Finance For privately owned infrastructure projects

6 Contract (Tender) Based Finance

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THE transport and l o g i s t i c s s e c t o r ca n b e n e f i t f ro m

Development Bank of Namibia (DBN) finance in two phases, says Jerome Mutumba, the executive responsible for marketing and corporate communication. The first phase is to weather the Covid-19 pandemic until the

vaccine rollout. The second is to grow apace with the growth of economic activity driven by the African Continent Free Trade Area (AFCFTA).

Talking about the Bank’s first phase interest in the sector, Mutumba says the Bank is currently prioritising preservation of the existing sector through Covid-19

financing measures, which have included repayment holidays for SMEs, and that now extend to the Covid-19 business relief loans. The business relief loans provide three or six months operating capital, depending on the need of borrowers.

The sector, he says, has been severely affected by

Development Bank Stands Behind Transport and Logistics Sector... Calls for enterprises to develop financial roadmaps for the future

lockdowns, however, it is vital to preserve capacity to ensure the current movement of goods as well as for the future.

Mutumba urges exist ing t r a n s p o r t a n d l o g i s t i c s enterprises to make use of the recently launched Covid-19 business relief loan to address operating challenges, where necessary.

Talking about start-ups, Mutumba says although in some instances the current economic environment could appear as an uphill battle for potential new enterprises, the Bank will consider applications from new enterprises with sound business cases.

Looking beyond the vaccine rollout, Mutumba points to the beacon of AfCFTA, which, he says, will incrementally enhance demand for transport and logistics as Namibian enterprises begin to take advantage of enhanced opportunities for production and efficiency. This, he says, will be driven by demand for Namibian goods, as well as reduced trade costs, particularly in the sub-Saharan Africa (SSA) region, but potentially further afield.

Although fleet immediately springs to mind in connection with future trade opportunities, Mutumba urges enterprises in the sector to consolidate and strengthen capacity with fixed assets such as cold storage and freight consolidation facilities. The positioning of Namibia as a transport hub in the SSA region, and ongoing policy development and implementation justify the development of fixed assets with a long-term view.

I n t e r m s o f t r a n s p o r t operations, Mutumba adds that the bank supports contracted arrangements with contract-based f inance as well as performance guarantees.

Talking about participation and inclusiveness in the sector, he says the Bank can also provide finance for management buy-ins. Mutumba notes that management buy-ins are a means to both strengthen the capital base of the enterprise as well as provide new capacity for the enterprise.

Buy-in capacity, Mutumba says, may also strengthen the fortunes of interdependent organisations. He uses the example of an enterprise producing, retailing or wholesaling goods buying into a transport and logistics enterprise. The producing enterprise can secure i ts transport and logistics needs through this diversification of its interests while also benefiting from additional operations of the transport and logistics enterprise, while the transport and logistics enterprise can secure itself and expand with the additional capital.

The Bank, Mutumba concludes, stands firmly behind the transport and logistics sector. He calls on enterprises to approach DBN to begin developing a financial roadmap for their futures.

Jerome Mutumba

Thursday, 25 February 2021 11Spotlight on tranSport & logiSticS

• ADAM HARTMAN

THE Namibian Ports Authority (Namport) co n t i n u e s b e i n g

relevant despi te the Covid-19 pandemic, as it achieved another milestone last month when it handled 20 000 tonnes of sulphur for the Zambian market.

The bagging operation took place at the harbour as a joint operation by Namport and Manica Group Namibia. The operation required offloading to take place while the vessel was alongside with the sulphur being fed into hoppers and then bagged daily.

The commodity was transported in trucks, which would carry a return load of copper from Zambia to the port to reduce freight costs and optimise the economies of scale. The copper will be exported to China, Germany, and Russia, among others.

Namport’s commercial exe c u t i ve I m m a n u e l !Hanabeb said these activities affirm the strategic positioning of Namport as a connecting port not only for landlocked countries in Africa but also for countries beyond the continent.“The volume growth is expected to be supported by the additional sulphur imports in bulk of 130 000 tonnes per year allocated for the copper mines in Zambia and Democratic Republic of Congo. This will provide return loads of copper from Zambia and DRC that will further increase copper exports from 18 000 tonnes to 40 000 tonnes per month,” he said.

One of the big challenges though, !Hanabeb said, is the shortage of empty containers.

“For the 2020/21 year, the shipping market is experiencing shortage of empty containers globally and southern African ports have not been spared. This has hamstrung exports and imports. We are working with all relevant stakeholders to improve the supply of containers,” he said.

R e g a rd le ss o f t h e p a n d e m i c , N a m p o r t remained operational while staff adhered to Covid-19 health protocols.

N a m p o r t communications manager Tana Pesat told The Namibian that Covid ironically was a blessing in disguise for Namport as competitor ports (especially in South Africa) were forced to close temporarily due to a rise in infections among their workforce and ships which were set to dock were forced to use alternative

Pandemic cannot stop Namportports – such as Walvis Bay.

Figures presented to the newspaper showed that the total container throughput capacity overall increased by 10% at Lüderitz and Walvis bay – to 135 194 containers in 2020/21 (during the first 10 months of the financial year) compared to 128 779 handled the year before.

The two ports also maintained operational

control and capabilities by handling 5 066 203 tonnes of cargo during the financial period 2020/21 compared to 4 346 153 tonnes the year before. This shows an increase of nearly 17% in cargo handling, and according to Pesat, this was due to increased commodities being imported and exported.

Lüderitz has reflected the

largest portion of growth by increasing activity, recording a total of 360 000 tonnes of cargo per annum.

Namport has seen a decrease in Roll on-Roll off (RoRo) car carrier vessels in 2020/21 compared to the previous year.

“The presence of these vessels indicates that the market for second-hand vehicles is still favourable in

SADC. With Namibia at the very strategic location that it is, the country is given a favourable advantage to be a connecting point to neighbouring land-locked countries such as Zambia, Zimbabwe, Botswana and DRC who make frequent use of the seamless offerings of Namport,” said Pesat.

Covid-19 had a major impact on passenger liner

traffic. According to Pesat, during 2019/20, 18 passenger liners docked at Walvis Bay and eight at Lüderitz. This success of frequent passenger liners during the high season between January and April at Namibian ports was due to the upgrading of infrastructure facilities and therefore attracted bigger passenger liners to both ports.

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